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Q1 - Q1 Approach, wait and see or invest ?

Discussion in 'General Discussion' started by Carla Reis, Dec 24, 2017.

  1. Carla Reis
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    Carla Reis Inspired Forum Member Registered

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    As 2017 comes to an end, what's your current state of mind ?

    1- Continue seeking for investment properties and buy if makes sense.
    2 - Slow down and observe the market and see how it will behave with new mortgage rules.


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  2. ThomasBeyer
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    ThomasBeyer Senior Forum Member REIN Member

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    Always observe market and be ready to act if it makes sense to buy with cash flow, mortgage pay down AND value upside !

    Merry Christmas !

    There will be some spectacular 20% or more below market opportunities as some sellers have to sell and buyers can’t qualify.


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  3. Carla Reis
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    Carla Reis Inspired Forum Member Registered

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    Indeed, I agree and some markets may decline a bit as sellers will have a harder time to sell.
    Merry Christmas Thomas !

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  4. David Wilson
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    David Wilson New Forum Member REIN Member

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    With the new lending requirements it will mean there are less people that qualify under the new rules. The Bank of Canada is predicting the rules could cut out 10% of borrowers with large down payments and make them ineligible for a loan. Some $15 billion in Mortgage money cut from the market OR these people could simply go anywhere other then the banks for a mortgage. People are so focused and concerned about the new rules when all they have to do is look elsewhere to avoid them completely.

    There will be those that don't know any better, so the market should still soften a little but there will be a need for more alternative mortgage money. Those with the capital and underwriting experience to make good lending decisions should expect to see an increase in business or at least an increase those seeking private funds as an alternative to the banks. The subprime lenders and Mortgage brokers should be having a field day under the new system if they are well connected.

    Cash flow is cash flow in any market, look out for opportunities, but there may be easier ways to make money in real estate this year.
     

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